Tuesday, January 15, 2013

For decision-makers considering climate change legislation,
an assortment of policy instruments is available; studies suggest that
a combination could be most effective in achieving various climate
policy objectives. Current policy attention has focused on “cap and
trade” strategies to reduce greenhouse gas emissions, with additional
policy tools aimed at promoting the technology development
considered necessary to slow climate change significantly.

In parallel, growing attention is being given to supporting adaptations to
expected future changes, as well as to strategies to gain effective
international engagement in reducing greenhouse gas. One significant
obstacle to consensus is concern about the potential costs of abating
greenhouse gas emissions, since deep reductions would
require extraordinary changes in energy use and technologies. Studies
suggest that efficiently designed programs could moderate the costs of
reducing greenhouse gas emissions; technically and politically, though,
an “efficiently designed” program may not be realistic.

Policy options can ease the adjustments required and modify
the distribution of costs—or potential wealth embodied in distribution
of emission allowances—across specific sectors or populations. A
core challenge of policy design, then, is balancing the climate
effectiveness of a policy, the economic costs, and its distributional
effects.

Date of Report: January 3, 2013
Number of Pages: 353Order Number: C12033Price: $79.95

For email and phone orders, provide a Visa, MasterCard, American Express, or Discover card
number, expiration date, and name on the card. Indicate whether you want e-mail
or postal delivery. Phone orders are preferred and receive priority processing.